Determining expected cost savings

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Reference no: EM13141109

Spotech Co.'s budgeted sales and budgeted cost of sales for the coming year are $212,000,000 and $132,500,000, respectively. Short-term interest rates are expected to average 5%. If Spotech could increase inventory turnover from its current 8.0 times per year to 10.0 times per year, its expected cost savings in the current year would be

A: $ 165,625

B: $0

C: $3,312,500

D: $ 828,125

Reference no: EM13141109

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